In short: Nigeria's standard VAT rate is 7.5%. To add VAT, multiply the amount by 0.075 and add it (₦10,000 + ₦750 = ₦10,750). To find the VAT inside a VAT-inclusive total, divide by 1.075 to get the amount before VAT (₦10,750 ÷ 1.075 = ₦10,000) and subtract it from the total.
The formulas
| To work out | Formula | Example |
|---|---|---|
| VAT to add | amount × 7.5 ÷ 100 | ₦40,000 × 0.075 = ₦3,000 |
| Total with VAT | amount × 1.075 | ₦40,000 × 1.075 = ₦43,000 |
| Amount before VAT | total ÷ 1.075 | ₦43,000 ÷ 1.075 = ₦40,000 |
| VAT inside a total | total − (total ÷ 1.075) | ₦43,000 − ₦40,000 = ₦3,000 |
About VAT in Nigeria
VAT in Nigeria has been 7.5% since February 2020. It's charged on most goods and services, while some are exempt or zero-rated (for example, basic food items, medical and pharmaceutical products, and tuition). Small businesses below the registration threshold generally don't have to charge VAT. Tax laws were reformed in 2025 and the Federal Inland Revenue Service is becoming the Nigeria Revenue Service, so check the current rules, or ask an accountant, before you start or stop charging VAT.
On invoices, show VAT as its own line after any discount. In ENB, you set your tax name and rate once and every invoice does this for you; expenses can record the VAT you paid, and the tax report totals both for each period.
Frequently asked questions
What is the VAT rate in Nigeria?
7.5%, since 1 February 2020.
How do I calculate 7.5% VAT?
Multiply the amount by 0.075. For ₦20,000 that's ₦1,500, so the total is ₦21,500.
How do I remove VAT from a total?
Divide the total by 1.075 to get the amount before VAT; the difference is the VAT.
Do I have to charge VAT?
Only if you're required to register for VAT and you sell taxable goods or services. Check the current threshold with the tax authority or your accountant.